Strategic Analysis of Brazil Electric Vehicle Market

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Era of Electric Vehicles in Brazil, With Market Growing to More than 80,000 Units by 2020

This study analyses the developments in the Latin American eMobility space and focuses on the Brazilian electric vehicle market. The study presents the key market drivers, restraints, and challenges in the market and outlines the current legislative scenario in the region. The study forecasts the market size for electric vehicles in Brazil through years 2012 to 2020, and the size of the corresponding charging infrastructure market. Frost & Sullivan has also presented a city attractiveness analysis for Latin America, considering the key regions for electric vehicle adoption. In conclusion, the study provides key recommendations for OEMs with regard to electric vehicle product positioning in the Brazilian market.

Key Findings

Brazil EV Market

By 2020, an estimatedXelectric vehicle (EV) models are expected to be launched in Brazil, with the market growing to X+ units by end of 2020.

Nissan Leaf, Ford C-max Energi, Chevrolet Volt, and other key models from majority of global automotive participants will be first models to enter the market.

Legislative Support

The Brazil automotive policy towards EVs is currently in its nascent stage, and the second phase of INOVAR auto program is expected to have incentives for EV manufacturers/ buyers/ users.

The industry expects reduction in import duties or a X% waiver of import duties initially, and also a reduction in industrial production IPI to around X%.

Charging Infrastructure

Currently only focused in Sao Paulo and Rio de Janeiro, the charging infrastructure is expected to strengthen across other key regions, namely, Pernambuco, Sergipe, and Ceara.

The charging installation forecast for 2020 is expected to be around X points in Brazil.

Of this X points, around Xto X% would be Level Xand X to X% Level X.

Price Analysis

Research indicates that the Brazilian end-user base, although receptive to EV technology, is not ready to pay a large premium over conventional vehicles.

A price bandwidth of $Xto $X for plug-in hybrid electric vehicles (PHEV) and $Xto $Xfor battery electric vehicles (BEV) is estimated to be the right market entry points.

Key Findings and Future Outlook: Brazil, 2012 and 2020

Market Stage and Evolution
Current

Brazil’s EV market is currently in its nascent stage and is expected to grow significantly after 2017.

The majority of global automotive participants are currently evaluating the market with pilot launches and testing.

Future

In the long-term, Brazil is expected to emerge as the leading market for EVs in Latin America.

The Chile, Colombia, and Mexico regions are expected to offer significant market opportunity.

Charging Infrastructure
Current

Current infrastructure is focused only around Sao Paulo and Rio de Janeiro.

Government support and incentives towards infrastructure deployment is currently believed to be in the planning phase.

Future

Legislative impetus mandating the establishment of charging stations across key regions (X or more cities) is expected by the end of 2014.

A pay-as-you-go business model is most likely to succeed, as compared to a subscription-based model.

States which offer a partial exemption on road tax for EV owners
Rio de Janeiro
Sao Paulo
Mato Grosso do Sul

No other incentives have been announced as yet for Evs.

Key Questions this Study will Answer

What is the status of the EV market in Brazil at present, and market estimation for the short, medium and the long-term with scenarios? What is the impact of regulatory and macro-economic trends to market growth?

What is the potential EV market size in Brazil through 2020? Which are key EV models expected to compete in the market and what are OEMs launch plans?

What is the charging station infrastructure mix required to support the EVs? What is the split between residential and public charging stations? What business model will be used

How can OEMs leverage this market, and what would be the right product positioning strategy?